The Leading Source of Information on Emerging LNG Markets

zeus
LIQUEFIED NATURAL GAS
report
Client Letter
Lets Get Flexible............................................................ 2

Analysis from Zeus Intelligence

FSRUs: Meeting the Needs of Smaller-
Demand Markets.............................................................. 3

LNG News Briefs

Europe...............................................................................6
Select European countries sign MOU to create an integrated gas market.
Croatian government declares Krk LNG project of strategic importance.
Ukraine considering LNG to mitigate gas storage shortfall. DNV GL
announces completion of next generation LNG carrier concept study.

Asia..................................................................................10
Engie, Kansai Electric sign LNG partnership agreement. South Korea
announces plans for LNG bunker sites. Golar signs agreement with
Keppel to convert third FLNG.

North America................................................................. 13
LNG Canada files for 40-year super permit from NEB. DOE grants
Bear Head LNG export approval. MARAD begins review of Delfins
LNG export application. Shell sells equity in Elba Island project to
Kinder Morgan. Bipartisan Senate group announces new energy bill to
accelerate DOE approval timeline. G2 LNG export project receives FTA
export approval. GAIL announces plans to swap contracted U.S. LNG
volumes with closer seller.

Vol. XXV, No. 14 A Publication from Zeus IntelligenceTM July 31, 2015
 zeus
LIQUEFIED NATURAL GAS
report
www.ZeusIntel.com/ZLNGR
The Leading Source of Information on
Emerging LNG Markets
ZEUS LNG REPORT
is published semi-monthly by
Zeus Intelligence - a Hart Energy
Company
Editorial Office
1616 S. Voss Rd., Suite 1000
Houston, TX 77042
Phone: (713) 260-6400
Fax: (713) 840-8585
Zeus Liquefied Natural Gas Reports
objective is to collect, analyze, and
disseminate meaningful information
pertaining to new markets for liquefied
natural gas.
Subscriptions are $1,049/year by first-class
mail in the U.S. or $999/year electronic
PDF. (Texas residents, add 8.25% sales tax.)
To inquire about a subscription
or information on advertising rates please
contact Neresa Williamson at
(713) 260-4649 or via e-mail
subscriptions@hartenergy.com
Zeus Intelligence is a central source of
expertise and critical analysis on LNG.
Zeus is dedicated to bolstering emerging
industries by providing publishing and
consulting services.
2015 Zeus Intelligence
ISSN# 1944-5881
Reproduction by any means is illegal
and punishable by fines up to $50,000
per violation. To acquire reproduction
authorization, please contact:
Hart Energy
1616 S. Voss Rd., Suite 1000
Houston, TX 77042
(713) 260-4649
subscriptions@hartenergy.com
2 Zeus Liquefied Natural Gas Report
Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
Client Letter
Lets Get Flexible
Dear Client,
Welcome to the latest issue of the Zeus LNG Report. In a time of general concerns
about falling oil and gas prices, slowing demand in China and supply gluts, its
always refreshing to see the LNG industry strive to break existing paradigms and
push for reinvention. In this latest issue, we see evidence around the world of buy-
ers and sellers looking to bend and adapt new technologies, business models and
strategies to achieve success in an ever shifting market.
In Europe, threats of a resurgent Russia have pushed consumers in and out
of the EU to examine how best to support their natural gas needs. As EU members
in Southern and Eastern Europe collaborate further on developing diversified gas
sourcing strategies, individual countries like Croatia move to anoint projects like
the Krk import terminal as strategic assets. Meanwhile those outside of the fold,
like the Ukraine, look hungrily toward LNG as a solution to supplying sufficient
gas for what may be a long, cold winter.
Across the pond, the ever-evolving North American LNG marketplace
is also experimenting with new ideas and models. Canadas Bear Head LNG has
received approval from the U.S. Department of Energy (DOE) to utilize both
U.S. gas to supply its proposed export project, along with Canadian supplies. The
result is an increased diversification of feed gas supply, which the company hopes
to expand with further DOE approvals. Meanwhile, separate deals from GAIL
and Kansai Electric Power have underscored both firms move to potentially swap
contracted North American volumes with those closer to home. The end goal for
both is to develop a more efficient (and hopefully lower cost) modelsomething
the LNG industry has only begun to examine.
Business models are not the only things changing, however. Golars
decision to convert its LNG carrier Gandria to a floating LNG (FLNG) ves-
sel underscores that floating liquefaction has truly gone from drawing board to
reality, opening up major new potential frontiers for development. And in South
Korea, the energy ministrys decision to develop LNG bunkering infrastructure
throughout the country may provide an inroad into the major global marine
fuels market, opening up vast new opportunities.
So as the rest of the energy industry grapples with major challenges, we
look forward to keeping you apprised of this exciting market as it evolves toward
new realities.
Sincerely,
Zeus LNG Report
July 31, 2015
 Analysis from Zeus Intelligence

FSRUs: Meeting the Needs of Smaller-

Demand Markets
Through the half-century history of LNG, the industry has been governed largely by
huge baseload terminals loading cargos onto increasingly larger carriers for transglobal
voyages. LNG has been used to fuel industrialized, developed nations such as the U.K.,
France and Japan originally, followed shortly thereafter by Spain and South Korea,
among others.
As technology progressed and demand exploded across the globe, the scale of these
projects grew as well. Liquefaction train and regasification plant capacity increased and LNG
carrier capacity swelled. Towards the end of the first decade of the 2000s, Qatar inaugurated
the largest liquefaction trains in the world in Ras Laffan, capable of sending out 7.8 million
tonnes annually. To complement these colossal facilities, the Qataris unveiled the largest ship-
ping vessels in the industry, classified as Q-Max and Q-Flex. Each of these feats of engineer-
ing had about 50% more capacity than the respective previous world leaders. Qatar built six
of these enormous trains to go with 14 Q-Max vessels, all in the span of about three years.
After the nuclear meltdown at Fukushima that resulted in a large jump in Japans reliance on
LNG imports, it seemed the Qataris had anticipated the future perfectly and were poised to
take full advantage of this market dynamic.
But about that same time, a different development was occurring across other parts
of the globe. Countries from Latin America to the Middle East to Southeast Asia began mov-
ing forward with floating regasification and storage units (FSRU) as an import method. With
a number of these units being simply converted former LNG carriers, the trend was a stark
contrast to what was being undertaken in Qatar.
FSRUs are a relatively new
Number of Floating Regasification phenomenon. The first LNG carrier to be
Terminals converted into one, the Golar Spirit, was
only completed and commissioned as an
20
import vessel in 2009, when it was char-
18 tered to Petrobras and installed in Brazil.
16 Prior to that, several import facilities had
14 been built using floating technology of
Africa
sorts, including Teeside in the UK and
12 Asia
Bahia Blanca in Argentina. In those cases,
10 Middle East the floating technology was fabricated for
Latin America use at those facilities. The attraction of
8
North America these units is that they are much more cost
6
Europe effective, have shorter lead times, are flex-
4 ible in their location and are optimized to
2 serve smaller demand markets.
At the start of 2015, 16 LNG
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 import terminals were in operation that
Source: Stratas Advisors, GIIGNL
employed floating regasification technol-

July 31, 2015 Zeus Liquefied Natural Gas Report 3

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
 ogy. By April 2015, when the Hoegh Gallant arrived offshore Ain Sukhna, Egypt, to be
moored permanently as an FSRU, every region except for Russia and the Commonwealth
of Independent States had a floating regasification terminal of some sort.
Perhaps the most notable part of the explosion in FSRU technology is where these
units are being deployed. One exists in China and two more are in operation in Indonesia,
but the remaining units have been installed in countries that are either small, developing or
have disaggregated demand in some way.
Nowhere is this more apparent than in Latin America. With six operational facili-
ties, the region is responsible for nearly one-third of the active FSRUs across the globe. While
only Brazil and Argentina currently employ FSRU technology, the way these countries have
embraced it is an encouraging sign for the widespread use of the units across the region and
in other similar areas. Brazil is a fast-developing nation, but lags behind in a number of
ways technologically. The Golar Experience, the latest installation of Brazils FSRU fleet, was
brought in almost exclusively to meet the expected energy demand from the World Cup that
the country hosted in the summer of 2014. Brazils government expected the energy grid to
be too strained without it, and the countrys energy transmission system was and still is too
disaggregated to efficiently distribute energy as needed.
Elsewhere in Latin America, Uruguay currently has a floating regas terminal under
construction that will be made operational at some point in 2015 or 2016. It will be the
countrys first LNG import terminal of any kind and will be the largest FSRU in operation
when it is delivered. Chile has two operational import terminals, but experiences the same
problem as Brazil in terms of a disaggregated transmission system. There are plans for an
FSRU to be put in place at Quintero Bay, though they have been delayed due to complica-
tions over the exact location. Latin America will remain a driving force behind FSRUs for
the coming decades because of the nature of the region. With small but growing gas demand,
geographical barriers and few international pipelines, Latin America is ideally suited to the
deployment of FSRUs.

Latin American Gas Demand

50

45

40
LNG Exports
Billion Cubic Feet per Day

35
Electricity
30 Other
25 Energy

20 On-Road Transportation
Non-Road Transportation
15
Industrial
10
Commercial
5 Residential
0

Source: Stratas Advisors, GIIGNL

4 Zeus Liquefied Natural Gas Report July 31, 2015

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
 Throughout the rest of the world, a number of other countries have turned to
FSRUs to alleviate these problems. Kuwait, Dubai and Jordan are all nations with smaller de-
mand that do not require full-fledged import terminals. Egypt and Pakistan are both energy-
starved countries and FSRUs offer quick solutions to relieve some of the strain. Lithuania was
nearly fully reliant on pipeline imports from Russia and was able to take a significant amount
of bargaining power away from the Russians with the 2014 installment of the Independence.
The experiences from FSRU use have all been positive, from the shorter lead times,
to the more controllable capital costs, to the flexibility of placement. Lithuania spent a mere
$128 million on the FSRU Independence and accompanying onshore infrastructure for a
plant with regasification capacity of slightly over two million tonnes annually. By compari-
son, the Naoetsu onshore LNG terminal in Japan was completed at a cost of over $1 billion
and has an annual capacity of only 1.5 million tonnes. The success of this technology has led
to other countries with similar characteristics studying the notion as well. In Africa, Ghana
has underdeveloped energy infrastructure and is looking for a more affordable option. Na-
mibia is in need of an FSRU to feed a proposed gas-fired power plant, and Senegal has also
floated proposals for an FSRU.
India is perhaps one of the most interesting opportunities for FSRU technology.
India is unique in that it is maybe the only country to be identified as both a major growth
opportunity for LNG imports and an FSRU candidate. For the last five years, India has
been among the top five largest importers of LNG, importing anywhere between 12 and
15 million tonnes annually. India has a severely disadvantaged transmission system; despite
huge energy demand in the country, several of their active import terminals operate with very
low utilization rates. FSRUs are an ideal solution for this kind of problem because they do
not require huge investment, are of a smaller scale, and, perhaps most importantly, can be
relocated if needs or demand change. Shell had proposed an FSRU for the Kakinada sea port,
but decided last year to join forces with Andra Pradesh, GAIL and GDF Suez. Other projects
are proposed for Kolkata and Papavav, among other locations.
Because of the low costs and versatility, the market for FSRUs is almost global. West
Africa, the Caribbean, Southeast Europe, Baltic Europe and Southeast Asia are all prime
candidates for the expansion of this technology. There is no doubt that large-scale plants
will continue to account for the lions share of LNG trade in terms of sheer volume. But for
industry players that are anticipating future opportunities, it is high time to give FSRUs their
due.

July 31, 2015 Zeus Liquefied Natural Gas Report 5

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
 News Briefs

Europe
1. Select European Fifteen EU and Energy Community countries in the Central Eastern Europe and Southeast Eu-
Countries Sign MOU ropean regions agreed to work together to accelerate the building of missing gas infrastructure
to Create an Integrated links and to tackle the remaining technical and regulatory issues that hamper security of supply
Gas Market and the development of a fully integrated and competitive energy market in the region.
The memorandum of understanding that formally launches this initiative was signed
in Dubrovnik, which will pave the way for the closer integration of the E.U. and Energy
Community energy markets. By creating a stable regulatory and market framework, it will
help improve the investment climate in the involved EU and Energy Community countries
and territories, according to the statement.

2. Croatian Government During a recent meeting of the government of Croatia, the proposed Krk FLNG regasifica-
Declares Krk LNG tion terminal was declared to be a project of strategic importance. By virtue of the designa-
Project of Strategic tion, the project will have its permitting project streamlined and prioritized. The Krk project
Importance has been of particular focus in recent months as a possible opportunity to develop further gas
PROJECT
DETAILS supply security and diversification throughout the E.U.

3. Ukraine Considering With current gas storage of some 12.5 billion cubic meters (Bcm), Ukraine has reportedly
LNG to Mitigate Gas been examining a project to develop an LNG import facility. Reuters reported that the coun-
Storage Shortfall try currently stands at about 18 to 19 Bcm short of the targeted total gas in storage it hoped
to have in place by mid-October. Although Ukraine has continued to place roughly 32 mil-
lion cubic meters in storage each month since April; at the present rate, this will still leave it
3 Bcm short of the targeted total.
Ukraine ceased purchasing Russian gas in July, and has been using gas sourced
from Europe and domestic production. As a result, the Ukrainian government has ordered
Naftogaz to borrow $1 billion to finance gas purchases, while the European Bank for Recon-
struction and Development is also reportedly mulling providing a $300 million trade finance
loan to Naftogaz as well to help further this aim.
The country has also resurrected previous plans to develop LNG import infrastruc-
ture to help support gas supply. Naftogaz and U.S. firm Frontera Resources Corp. have sepa-
rately announced a memorandum of understanding to develop such a facility on the Black
Sea coastline, with supply coming from the firms gas prospects in Georgia.

4. DNVGL Announces Alongside project partners Hyundai Heavy Industries, GasLog and GTT, DNV GL an-
Completion of Next nounced the results of its LNGreen joint industry project. The goal of the project was to
Generation LNG develop a next generation LNG carrier with greater efficiencies and a reduced environmental
Carrier Concept Study footprint. The resulting work developed a 182,000 cubic meter capacity vessel that offered
8% greater energy efficiency and 5% greater cargo capacity. In addition, the carrier was built
to new Panamax scale and fully compliant with the IGC Code.

6 Zeus Liquefied Natural Gas Report July 31, 2015

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
LNG PROJECT INVENTORY: EUROPE
As of July 31, 2015

Conventional World-Scale Offshore

Operational Export: Hammerfest LNG Train 1 (Norway)

Import: Aliaga LNG (Turkey), Bahia de Bizkaia LNG (Spain), Barcelona Adriatic LNG (Italy), Lithuania LNG (Lithuania), Livorno
Terminal Recepcion de GNL (Spain), Cartagena (Spain), Dragon LNG (Italy), OLT Offshore LNG Toscana (Italy),
LNG (UK), Fos Cavaou LNG (France), Fos Tonkin LNG (France), Teesside GasPort (UK)
Galician (Spain), Grain LNG (UK), Huelva (Spain), Marmara
Ereglisi (Turkey), Montoir-de-Bretagne LNG (France), Panigaglia
LNG (Italy), Revithoussa LNG (Greece), Sagunto (Spain), Sines
LNG (Portugal), South Hook LNG (UK), Zeebrugge LNG (Belgium),
GATE (NL)

Under Const. Export: Yamal LNG (Russia)

Import: Dunkirk LNG (France), Pori LNG (Finland), Swinoujscie LNG (Poland), Port Meridian LNG
Tornio Manga LNG (Finland)

Concept Export: Baltic LNG (Russia), Ceyhan LNG Train 1 (Turkey), Cyprus LNG Export
Train 1,2,3 (Cyprus), Georgia LNG Train 1 (Georgia), Hammerfest LNG
Proposed Train 2 (Norway), Kaliningrad LNG (Russia), Sakhalin 2 Train 2 (Russia)

Import: Cavey LNG (UK), Constanta LNG (Romania), Cyprus LNG (Train Gateway Irish Sea Offshore LNG Import Terminal and
1,2,3) (Cyprus), Eemshaven (Holland), Sicily LNG (Italy), Estonia Gas Storage Project (Ireland), Malta FSRU (Malta),
LNG (Estonia), Fos-sur-Mer (France) Gavle (Sweden), Gothenburg Odessa FSRU (Ukraine),
LNG (Sweden), Medgas Gioia Tauro LNG (Italy), Kaliningrad Triton LNG (Italy),
(Russia), Krk LNG (Croatia), Latvia LNG (Latvia), Las Palmas de Gran Wilhelmshaven GasPort (Germany),
Canaria (Spain), Le Havre-Antifer LNG (France), Malta LNG (Malta),
Falconara Maritimma FSRU (Italy)
Monfalcone LNG (Italy), Oxelosund (Sweden), Priollo Porto Empedocle
Sicily (Italy), Rauma LNG (Finland), Santa Cruz de Tenerife (Spain),
Taranto-Gas Natural (Italy),Trieste Zaule LNG (Italy)

Significantly Export: Shtokman LNG (Russia)

Delayed,
Import: Adria LNG (Croatia), El Musel (Spain), Gulf of Finland LNG (Finland),
Shelved, LionGas (Netherlands), Muggia (Italy), Pegaz LNG (France), Odessa
Mothballed (Ukraine) Rosignano (Italy), Shannon LNG (Ireland), Sillamae LNG
(Russia), Taranto-Enel (Italy), Vado Liquere (Italy)

July 31, 2015 Zeus Liquefied Natural Gas Report 7

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
LNG PROJECT INVENTORY: AFRICA
As of July 31, 2015

Conventional World-Scale Offshore

Operational Export: EG LNG Train 1 (Equatorial Guinea),

Egyptian LNG Train 1,2 (Egypt),
GL1K Skikda Train 10,50,60 (Algeria),
GL1Z Bethioua Train 1,2,3,4,5,6 (Algeria),
GL2Z Bethioua Train 1,2,3,4,5,6 (Algeria),
GL4Z Arzew Train 1,2,3 (Algeria),
Nigeria LNG Train 1,2,3,4,5,6 (Nigeria),
SEGAS LNG (Egypt),

Import: FSRU Gallant (Egypt)

Under Const. Export: GL1K Skikda Train 4 (Algeria), Hill FLNG (Cameroon)
GNL3Z Train 1 (Algeria),

Import:
Concept Export: Afungi LNG, (Mozambique), African LNG Train 1 (Nigeria), Mozambique FLNG Train 1, Nemed FLNG (Eqypt),
Proposed Brass LNG (Nigeria), Cameroon LNG Train 1 (Cameroon), Nnwa Doro offshore FPSO (Nigeria);
EG LNG Train 2 (Equatorial Guinea), EGLNG-R (Equatorial Guinea),
Egyptian LNG Train 3 (Egypt), Nigeria LNG Train 7,8 (Nigeria),
SEGAS LNG Train 2 (Egypt), Tanzania LNG (Tanzania)

Import: Dongo Kundu LNG (Kenya), Benin FSRU (Benin), Coega LNG (South Africa),
Morocco LNG (Morocco) Ghana FSRU (Ghana), Ghana 1000 FSRU (Ghana),
South Africa LNG (South Africa)

Significantly Export: Angola LNG (Angola), GL1K Skikda Train 20,30,40 (Algeria), NNPC/ Flex LNG/Mitsuibishi/Peak Petroleum Nigeria FPSO
Delayed, ExxonMobil Bonny Island Train 1 (Nigeria), Marsa El Brega LNG Train 1 (Nigeria);
(Libya), Mauritania LNG Train 1 (Mauritania), Olokola LNG Train 1, 2, Berbera LNG Train 1,2 (Somalia); Djibouti Train 1
Shelved,
3, 4 (Nigeria), West Niger Delta Train 1 (Nigeria), Yemen LNG Flex LNG/Mitsuibishi/
(Djibouti)
Mothballed Peak Nigeria FPSO
Train 1 (Nigeria)

Import:

8 Zeus Liquefied Natural Gas Report July 31, 2015

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
LNG PROJECT INVENTORY: MIDDLE EAST
As of July 31, 2015

Conventional World-Scale Offshore

Operational Export: ADGAS Train 1,2,3 (Abu Dhabi),

Oman LNG Train 1,2 (Oman),
Qalhat LNG Train 1 (Oman),
QatarGas 1 Train 1,2,3 (Qatar),
Qatargas 2 Train 4,5 (Qatar),
Qatargas 3 Train 6 (Qatar),
Qatargas 4 Train 7 (Qatar),
RasGas 1 Train 1,2 (Qatar),
RasGas 2 Train 3,4,5 (Qatar),
RasGas 3 Train 6,7 (Qatar),
Yemen LNG Train 1,2 (Yemen)

Import: Ahmadi Regasification Terminal (Kuwait), Aqaba

LNG (Jordan), Dubai LNG FSRU (United Arab
Emirates), Hadera Offshore (Israel)

Under Const. Export:

Import: Fujairah LNG (United Arab Emirates)

Concept Export: Israel FLNG (Israel)

Proposed

Import: Bahrain LNG (Bahrain) KNPC FSRU (Kuwait),

Lebanon FLNG

Other:

Significantly Export: ADGAS Train 4,5 (Abu Dhabi), Iraq FLNG

Delayed, Cyprus LNG,

Persian LNG Train 1,2 (Iran),
Shelved,
Qeshm LNG (Iran)
Mothballed

Import:

July 31, 2015 Zeus Liquefied Natural Gas Report 9

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
 Asia
1. Engie, Kansai ENGIE (GDF Suez) and Japanese power producer Kansai Electric Power have signed a
Electric Sign LNG partnership agreement to cooperate on shipping optimization and various commercial issues,
Partnership Agreement per a recent announcement. Under the agreement, ENGIE will purchase some 0.4 million
tonnes per annum (mtpa) of LNG sourced from Kansai Electrics portfolio of North Ameri-
can LNG. Separately, ENGIE will be able to sell an equivalent volume of LNG sourced from
across its global portfolio to Kansai Electric, depending on market conditions. The agree-
ments will begin in 2019 and run for an initial period of four years that can be extended to
20 years.

2. South Korea The South Korean Energy Ministry has announced new plans to develop LNG bunker facili-
Announces Plans for ties at several ports, part of a new drive to dominate the burgeoning dual-fuel market. Initial
LNG Bunker Sites plans call for bunkering sites at Tongyeong by 2017, with facilities in Gwangyang, Boryeong
and Incheon. In addition, it also plans to start operating LNG bunker vessels beginning in
2018.

3. Golar Signs Golar LNG announced that it has signed an agreement with Keppel Shipyard to convert the
Agreement with LNG carrier Gandria to one of its GoFLNG floating liquefaction plant units. The agreement
Keppel to Convert will cover the second option included as part of the original 2014 agreement to convert the
Third FLNG LNG carrier Hilli to a FLNG unit.
Following her conversion, the Gandria will be dedicated to Ophir Energys Equa-
torial Guinea project beginning in 2019, thus releasing the Gimi unit to cover potential
emerging demand for a 2018 GoFLNG project. Liquefaction and topsides equipment for
the Gandria, as with the prior two GoFLNG projects, will be provided by Black & Veatch.

10 Zeus Liquefied Natural Gas Report July 31, 2015

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
LNG PROJECT INVENTORY: ASIA
As of July 31, 2015

Conventional World-Scale Offshore

Operational Export: Bontang LNG (Indonesia)
Brunei LNG Train 1,2,3,4,5 (Brunei)
Donggi-Senoro (Indonesia)
Malaysia LNG Dua Train 1,2,3 (Malaysia)
Malaysia LNG Satu Sdn. Bhd. Train 1,2,3 (Malaysia)
Malaysia LNG Tiga Train 1,2 (Malaysia)
PT Badak LNG Trains A,B,C,D,E,F,G,H (Indonesia)
Sakhalin 2 Trains 1,2 (Eastern Russia)
Tangguh Train 1,2 (Indonesia)

Import: Arun LNG (Indonesia), Chita LNG Joint (Japan), Chita LNG (Japan), Chita Lampung FSRU (Indonesia), Port Qasim FSRU
Midorihama Works (Japan), Dahej LNG (India), Dalian LNG (China), Fujian (Pakistan), West Java FSRU (Indonesia)
LNG (China), Fukuoka LNG (Japan), Futtsu LNG (Japan), Gwangyang (South
Korea), Hatsukaichi LNG (Japan), Hazira (India), Higashi-Ohgishima LNG
(Japan), Himeji Joint (Japan), Himeji LNG (Japan), Incheon (South Korea),
Kagoshima LNG (Japan), Kawagoe LNG (Japan), Kochi (India), Map Ta Phud
(Thailand), Mizushima LNG (Japan), Nagasaki LNG (Japan), Naoetsu LNG
(Japan), Negishi LNG (Japan), Nihonkai (Japan), Ohgishima LNG (Japan),
Oita LNG (Japan), Pyeong Taek (South Korea), Qingdao LNG (China), Qinghai
LNG (China), Ratnagiri LNG (India), Rudong LNG (China), Sakai LNG (Japan),
Sakaide LNG (Japan), Senboku LNG I (Japan), Senboku LNG II (Japan),
Shanghai LNG (China), Shenzhen Guangdong LNG (China), Shin-Minato
Works (Japan), Singapore LNG (Singapore), Sodegaura LNG (Japan), Sodeshi
LNG (Japan), Taichung (Taiwan), Tangshan LNG (China), Tobata LNG (Japan),
Tong Yeong (South Korea), Yanai Thermal Power Station (Japan), Yokkaichi
LNG Center (Japan),Yokkaichi Works (Japan), Yuedong LNG (China), Yungan
LNG Plant (Taiwan)

Under Const. Export: Bintulu FSRU (Malaysia), PFLNG 1 (Malaysia), PFLNG 2

(Malaysia)

Import: Beihai (China), CNOOC Tianjin (China), Dalian LNG (China), Fukushima LNG (Japan), VGS East Coast India (India)
Hachinohe LNG (Japan), Hainan LNG Project (China), Hitachi LNG (Japan), Ishikari
LNG (Japan), Jieyang LNG (China), Kaderio Creek LNG (Pakistan), Karachi LNG
(India), Kinawit LNG (Malaysia), Melaka LNG (Malaysia), Zhejiang LNG (China), Zhuhai
LNG (China)

Far East LNG (Eastern Russia), Natuna LNG (Train 1) (Indonesia),

Concept Export:
Malaysia LNG Empat Train 1 (Malaysia), Qianan LNG (China) Sakhalin 2
Abadi FLNG Train 1 (Indonesia), Black Sea LNG,
Malaysia FLNG (Malaysia), PFLNG 2 (Malaysia),
Proposed Train 3 (Russia), Tangguh LNG Train 3 (Indonesia) Swan Energy (India)

Import: Arun LNG (Indonesia), Batangas LNG (Philippines), Beihai (China), Binh Thuan LNG
(Vietnam), Bojanegra LNG (Indonesia), Boryeong LNG (South Korea), Calaga LNG Central Java FSRU, Chittagong FSRU (Bangladesh),
(Philippines), Central Java FSRU (Indonesia), Dhamra Port LNG (India), Dongguan East Java - EWC (Indonesia), Kakinada (India),
LNG (China), Ennore (India), Gawadar-Nawabshah LNG (Pakistan), Guangxi LNG Kakinada FLNG (India), Korea FLNG (South Korea),
(China), Hambantota LNG (Sri Lanka), Hiranandani Dighi Port (India), Jaigarh LNG Tianjin LNG (China)
(India), Joetsu LNG (Japan), Kakinada LNG (India), Kaliningrad LNG (Russia), Kandla
Port (India), Kattupalli LNG (India), Kitakyushu LNG Terminal (Japan), Lahad Datu LNG
(Malaysia), Limut LNG (Malaysia), Mangalore LNG (India), Mariveles LNG Terminal
(Philippines), Masela LNG (Indonesia), Mundra Port (India), Nanao Island- Shantou
SinoEnergy (China), Okinawa (Japan), Pagbilao LNG (Philippines), Paradip LNG
(India), Pengerang LNG (Malaysia), PetroVietnam LNG (Vietnam), Pipavav LNG (India),
Qinhuangdao LNG (China) , Reliance LNG (India), Rizhao LNG (China), Shangdong
Dongming Petrochemical Group LNG (China), Shanghai Wuhaogou LNG (China),
Shapoorji Pallonji LNG (India), Shantou LNG (China), Shenzen LNG (China), Shenzhen
Diefu (China), Sikka (India), Singapore (Singapore), Tabangao (Philippines), Tadadi
(India), Wakayama (Japan), Yingkou (China), Zhoushan LNG(China)

Significantly Export: Brunei LNG Train 6 (Brunei), Central Sulawesi LNG Project Train 1 Flex LNG Australasia FPSO Train 1 (East Timor)
Delayed, (Indonesia), PT Badak NGL Train I (Indonesia), Vladivostok LNG (Russia)

Shelved,
Mothballed

July 31, 2015 Zeus Liquefied Natural Gas Report 11

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
LNG PROJECT INVENTORY: OCEANIA
As of July 31, 2015

Conventional World-Scale Offshore

Operational Export:
Darwin LNG Train 1 (Australia), ExxonMobil PNG LNG (Papua New Alice Springs LNG (Train 1) (Australia),
Guinea), North West Shelf LNG Train 1,2,3,4,5 (Australia), Pluto LNG Karratha (Train 1) (Australia),
(Train 1) (Australia), Queensland Curtis LNG (Australia) Kwinana (Train 1) (Australia)

Import:

Under Const. Export: Australia Pacific LNG (Train 1,2) (Australia), Gladstone LNG (Australia), Prelude LNG (Australia)
Gorgon LNG (Train 1,2,3) (Australia), Ichthys LNG (Train 1,2) (Australia),
Wheatstone LNG (Train 1,2) (Australia),

Import:

Concept Export: Australia Pacific LNG (Train 3,4) (Australia), Browse FLNG (Australia), PNG FLNG (Papua New

Proposed Beaco LNG (Papua New Guinea),

Guinea), Sarawak FLNG (Malaysia), Scarborough
FLNG (Train 1) (Australia)
Fishermans Landing LNG (Train 1,2) (Australia)
Pluto LNG Train 2,3 (Australia),
Gorgon LNG Train 4 (Australia),
Papua LNG (Papua New Guinea),
Queensland Curtis LNG Train 3,4 (Australia),
Tassie Shoal LNG (Australia)

Import: North Island (New Zealand)

Arrow Energy (Train 1,2,3,4) (Australia) Bonaparte LNG (Australia),

Significantly Export:
Browse FLNG (Train 1,2,3) (Australia), Sunrise LNG (Australia),
Delayed,
Parama Island LNG (Train 1) (Papua New Guinea) Oliver Floating LNG (Australia), Petromin Hoegh
Shelved, DSME Floating LNG (Papua New Guinea)
Mothballed
Import:

12 Zeus Liquefied Natural Gas Report July 31, 2015

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
 North America
1. LNG Canada Files Shells announced that its LNG Canada project has filed with Canadas National Energy
for 40 Year Super Board (NEB) for a 40-year export license to replace the projects current 25-year license. The
Permit From NEB application is in order to provide regulatory certainty beyond the 25-year term and follow on
PROJECT
DETAILS the Canadian governments approval of legislation to extend the maximum term natural gas
licenses from 25 to 40 years.

2. DOE Grants Bear Canadas Bear Head LNG Export project has received approval from the U.S. DOE to export
Head LNG Export 440 billion cubic feet (Bcf ) per year of U.S. natural gas to Canada, and up to 8 mtpa of
Approval LNG from Canada to free trade agreement countries. The unusual agreement is a result of
PROJECT
DETAILS Bear Heads intention to source gas partially from the U.S. Bear Head and its proponent,
LNG Limited, has also applied to the Canadian NEB to import gas from the U.S. and ex-
port 8 mtpa from Canada, beginning in 2019.
Bear Head has also applied with the DOE for approval to export up to 250 Bcf per
year of Canadian-sourced natural gas that is in transit through the U.S. back to Canada. Doing
so would allow Bear Head to source gas from Western Canada and add to supply availability.

3. MARAD Begins The U.S. Maritime Administration announced that it has received an application from
Review of Delfins LNG Delfin LNG to construct, own and operate an offshore LNG export facility in the U.S. Gulf
Export Application of Mexico. The proposed facility would be 50 miles south of the Texas/Louisiana Border and
PROJECT
DETAILS utilize gas sourced from the national grid.

4. Shell Sells Equity in Shell announced that it sold its 49% equity stake in the Elba Island LNG Export project to
Elba Island Project to remaining partner Kinder Morgan. Under the terms of the deal, Shell will continue to sub-
Kinder Morgan scribe to 100% of the projects planned LNG production. According to Shell, Kinder Mor-
PROJECT
DETAILS gans expected incremental investment from the transaction is about $630 million. Subject to
regulatory approvals, construction is hoped to begin in late 2015, with first LNG in 2017.

5. Bipartisan Senate A bipartisan group of U.S. senators has announced a new bill on July 22 that includes provi-
Group Announces sions to speed up the DOE authorization process for LNG export applications. Under the
New Energy Bill to
terms of the bill, the DOE will be required to approve or deny applications to export LNG
Accelerate DOE
Approval Timeline to non-free trade agreement countries within 45 days of final action by the Federal Energy
Regulatory Commission or the Maritime Administration. A markup of the bill is currently
scheduled to begin the week starting July 27.

6. G2 LNG Export Louisianas G2 LNG export project has received approval to export up to 672 Bcf per year of
Receives FTA Approval U.S. LNG to free-trade agreement nations from the U.S. DOE. The 14 mtpa facility would
include two trains and is being developed on the Calcasieu Ship Channel.

7. GAIL Announces GAIL India has announced plans to issue a tender to swap over one-third of the LNG it
Plans to Swap has contracted with the U.S.s Sabine Pass Export and Dominion Cove Point liquefaction
Contracted U.S. LNG
projects with another seller closer to India in order to reduce total costs. The Times of India
with Closer Seller

July 31, 2015 Zeus Liquefied Natural Gas Report 13

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
 reported that current plans would entail swapping some 1 to 2 mtpa of its current 5.3 mil-
lion tonnes of contracted U.S. LNG.
These volumes would be traded to a seller in the Middle East, Asia or East Africa
in order to be sold to markets closer to the U.S. As a result, these volumes would save on
shipping costs and become more economically attractive, while GAIL would also save on
transportation costs to deliver the LNG to India. Pending board approval, the tender will be
released in August.

A different name with an expanded scope,

Hart Energy Research & Consulting is now

UPSTREAM | MIDSTREAM | DOWNSTREAM | FUEL & TRANSPORT

stratasadvisors.com

14 Zeus Liquefied Natural Gas Report July 31, 2015

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
LNG PROJECT INVENTORY:NORTH AMERICA
As of July 31, 2015

Conventional World-Scale Offshore

Operational Export: Kenai LNG Train 1 (USA)

Import: Cameron (USA), Canaport LNG (Canada), Dominion Cove Point Neptune (US), Northeast Gateway (US)
(USA), Elba Island LNG Terminal (USA), Everett (USA), Freeport LNG
(USA), Golden Pass LNG (USA), Gulf LNG (USA), Sabine Pass LNG
(USA), Trunkline LNG (USA)

Under Const. Export: Cameron LNG (USA), Corpus Christi LNG (USA), Cove Point LNG (USA),
Freeport (USA), Sabine Pass LNG (Train 1,2,3,4) (USA)

Concept Export: Alaska LNG (USA), Annova (USA), Aurora (CA), Bear Head (CA), Brownsville (USA), Aguirre Offshore GasPort (USA), Cambridge FLNG
Canada Stewart Energy (CA), Cedar LNG (CA), Corpus Christi LNG (USA), Discovery (CA), (USA), Delfin FLNG (USA), United LNG (USA)
Proposed Douglas Channel (CA), Downeast (USA), Elba Island Export (USA), Freeport train 4 (USA),
Goldboro LNG (CA), Grassy Point (Canada), Gulf Export (USA), Guysborough (CA), Jordan
Cove (USA), Kitimat LNG (Chevron) (CA), LNG Canada, Louisiana LNG (USA), Magnolia
(USA), Orca LNG (CA), Oregon LNG Export (USA), Pacific NorthWest LNG (CA), Pelican
Island LNG (USA), Port Arthur (USA), Prince Rupert LNG-ExxonMobil (CA), Quebec LNG
(CA), Rio Grande LNG (USA), Sabine Pass LNG trains 5, 6 (USA), SCT&E (USA), Tenaska
Bayou LNG (USA), Texas LNG (USA), Trunkline LNG Export (USA), Venture Global LNG
(USA), WesPac Midstream (CA), Woodfibre LNG (CA)

Import: Hawaii LNG (USA) Liberty Natural Gas (USA), Port Dolphin LNG (USA)

Significantly Export: Canaport LNG Export (Train 1) (Canada), Prince Rupert LNG (BG BP Chocolate Bayou Olefins Plant (USA) Ecogas Fort Bend LFG
Group) (CA) Plant (USA), Jumping Pound Gas Complex, San Joaquin County,
Delayed, California, Low-Btu Stranded Gas Liquefaction Project (USA)
Shelved,
Mothballed
Import: AES Battery Rock LLC, Bay Crossing LNG (USA), Bear Head LNG Broadwater Energy (USA), Excelerate FLNG (USA),
(Canada), Bienville Offshore Energy Terminal (USA), Blue Ocean Energy Gulf Gateway Energy Bridge (USA), Port Dolphin LNG
Terminal (USA), Bradwood Landing (USA), Cacouna Energy (Canada), (USA), Safe Harbor (USA)
Calais LNG (USA), Calhoun LNG (USA), Casotte Landing (USA),
Clearwater Port (USA), Compass Port (USA), Crown Landing (USA),
Downeast LNG (USA), Jordan Cove (USA), Ocean Way (USA), Pearl
Crossing (USA), Port Pelican LNG (USA), Port Westward LNG (USA),
Quoddy Bay LNG (USA), Skipanon LNG (USA), Sound Energy Solutions
(USA), South Texas LNG (USA), Sparrows Point (USA),Tansy Point LNG
(USA), Weavers Cove (USA)

July 31, 2015 Zeus Liquefied Natural Gas Report 15

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
LNG PROJECT INVENTORY: L. AMERICA, CARIBBEAN
As of July 31, 2015

Conventional World-Scale Offshore

Operational Export:
Atlantic LNG Train 1,2,3,4 (Trinidad and Tobago),
Peru LNG Train 1 (Peru)

Import:
AES Andres LNG (Dominican Republic), Bahia LNG (Brazil), Baha Blanca Dockside GasPort
Altamira LNG Terminal (Mexico), (Argentina), Escobar Dockside Gasport (Argentina),
Energa Costa Azul (Mexico), Guanabara Bay LNG (Brazil),
Manzanillo LNG (Mexico), Pecm LNG (Brazil)
Mejillones LNG (Chile),
Quintero LNG (Chile)

Under Const. Export: La Creciente LNG (Colombia)

Import: GNL del Plata (Uruguay)

Concept Export: Altamira LNG Export Terminal (Mexico), Brazil FLNG Train 1 (Brazil)
Proposed Atlantic LNG Train 5,6 (Trinidad and Tobago), Brighton LNG (Train
1), Colombia LNG Export (Train 1), Cuba LNG (Train 1) (Cuba), Delta
Caribe Oriental LNG Train 1,2 (CIGMA I,II) (Venezuela), Energa Costa
Azul Export (Mexico), Manzanillo LNG Export Train 1 (Mexico), Salina
Crux LNG (Mexico)

Import: Colombia LNG (Colombia), El Salvador LNG (El Salvador),
GNL do Nordeste LNG (Brazil), Lzaro Crdenas (Mexico),
Panama LNG (Panama), Rio Grande LNG (Brazil), Rio Negro Golfo San
Matias (Argentina), San Pedro de Macoris LNG (Dominican Republic),
Suape LNG (Brazil)
Aruba LNG (Aruba), Aguirre GasPort (Puerto Rico),
AES Ocean LNG (Bahamas), Bahia, Salvador LNG
(Brazil), Chilean FSRU (Chile) Colombia FSRU
(Colombia), Jamaica LNG (Jamaica), Mejillones FSRU
(Chile)

Significantly Export: Green LNG Train 1 (Brazil),

Delayed, Margarita (Pacific LNG) Train 1,2 (Bolivia)

Shelved,
Mothballed Import: Dorado (Mexico), Terminal GNL Mar Adentro de B.C.
Calypso LNG (Bahamas),
(Mexico)
Cardenas (Mexico),
Rio Grande FLNG (Chile)
High Rock LNG (Bahamas),
Honduras LNG (Honduras),
Salina Cruz LNG,
Sonora Pacific LNG Terminal (Mexico),
Topolobampo (Mexico),
Yucatan LNG (Mexico)

16 Zeus Liquefied Natural Gas Report July 31, 2015

Reproduction by any means is illegal and punishable by fines of up to $50,000 per violation. Copyright 2015 by Zeus Intelligence - a Hart Energy Company
zeus
LIQUEFIED NATURAL GAS
report
SUBSCRIBE

Subscription Options (Single-User)

q One Year (24 semi-monthly issues) - Electronic (PDF & Online) Edition $999.00

q Premium LNG Membership - Electronic Edition + International LNG Trade Database $1,599.00

Extensive multi-user discount options are available, Subtotal

beginning with two users. Please contact us
(713-260-4649, subscriptions@hartenergy.com)
8.25% Sales Tax (Texas only)
for more information. Total

Subscriber Information
Name: ___________________________________________________________________________________

Title:_____________________________________________________________________________________

Company:________________________________________________________________________________

Street Address: ____________________________________________________________________________

City: ___________________________ State: ______ Zip: __________________Country: __________________

Phone: _________________________________________Fax: ______________________________________

E-mail:___________________________________________________________________________________

Method of Payment
q Payment Enclosed q Please Send an Invoice
q Please Charge My: q Visa q MasterCard q Amex q Discover q Diners Club
Card #: ____________________________________________ Exp. Date: __________ Card ID: ___________

Name: _______________________________________ Signature: ___________________________________

Make Checks Payable to: Hart Energy Publishing. LLLP

P.O.Box 301405 w Dallas, TX 75303-1405 w USA w Phone: 713-260-4649
Please return completed form to subscriptions@hartenergy.com or
713-840-8585 (fax) or subscribe online at www.ZeusIntel.com/LNG