Trends In LNG Carriers and FSRUs 7 September 2017, Alexandroupolis Paul Wogan, CEO GasLog Ltd
Forward-Looking Statements 2 All statements in this presentation that are not statements of historical fact are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that address activities, events or developments that the Partnership expects, projects, believes or anticipates will or may occur in the future, particularly in relation to the Partnership s operations, cash flows, financial position, liquidity and cash available for dividends or distributions, plans, strategies, business prospects and changes and trends in the Partnership s business and the in which it operates. The Partnership cautions that these forward-looking statements represent estimates and assumptions only as of the date of this report, about factors that are beyond its ability to control or predict, and are not intended to give any assurance as to future results. Any of these factors or a combination of these factors could materially affect future results of operations and the ultimate accuracy of the forward-looking statements. Accordingly, you should not unduly rely on any forward-looking statements. Factors that might cause future results and outcomes to differ include, but are not limited to, the following: general liquefied natural gas ( LNG ) shipping market conditions and trends, including spot and long-term charter rates, ship values, factors affecting supply and demand of LNG and LNG shipping, technological advancements and opportunities for the profitable operations of LNG carriers; our ability to leverage GasLog s relationships and reputation in the shipping industry; our ability to enter into time charters with new and existing customers; changes in the ownership of our charterers; our customers performance of their obligations under our time charters and other contracts; our future operating performance, financial condition, liquidity and cash available for dividends and distributions; our ability to purchase vessels from GasLog in the future; our ability to obtain financing to fund capital expenditures, acquisitions and other corporate activities, funding by banks of their financial commitments, funding by GasLog of the revolving credit facility with GasLog entered into upon consummation of the initial public offering ( IPO ) and our ability to meet our restrictive covenants and other obligations under our credit facilities; future, pending or recent acquisitions of ships or other assets, business strategy, areas of possible expansion and expected capital spending or operating expenses; our expectations about the time that it may take to construct and deliver newbuildings and the useful lives of our ships; number of off-hire days, drydocking requirements and insurance costs; fluctuations in currencies and interest rates; our ability to maintain long-term relationships with major energy companies; our ability to maximize the use of our ships, including the re-employment or disposal of ships no longer under time charter commitments, including the risk that our vessels may no longer have the latest technology at such time; environmental and regulatory conditions, including changes in laws and regulations or actions taken by regulatory authorities; the expected cost of, and our ability to comply with, governmental regulations and maritime self-regulatory organization standards, requirements imposed by classification societies and standards imposed by our charterers applicable to our business; risks inherent in ship operation, including the discharge of pollutants; GasLog s ability to retain key employees and provide services to us, and the availability of skilled labor, ship crews and management; potential disruption of shipping routes due to accidents, political events, piracy or acts by terrorists; potential liability from future litigation; our business strategy and other plans and objectives for future operations; any malfunction or disruption of information technology systems and networks that our operations rely on or any impact of a possible cybersecurity breach; and other risks and uncertainties described in the Partnership s Annual Report on Form 20-F filed with the SEC on February 12, 2016, available at http://www.sec.gov. The Partnership undertakes no obligation to update or revise any forward-looking statements contained in this presentation, whether as a result of new information, future events, a change in our views or expectations or otherwise. New factors emerge from time to time, and it is not possible for us to predict all of these factors. Further, the Partnership cannot assess the impact of each such factor on its business or the extent to which any factor, or combination of factors, may cause actual results to be materially different from those contained in any forward-looking statement. The declaration and payment of distributions are at all times subject to the discretion of our board of directors and will depend on, amongst other things, risks and uncertainties described above, restrictions in our credit facilities, the provisions of Marshall Islands law and such other factors as our board of directors may deem relevant.
Committed to Flawless Operations GasLog: A Global Leader In LNG Transportation 3 2001 International owner and operator of LNG carriers since 2001 2017 28 Vessels Over 1,300 voyages to 126 ports in 43 countries London New York Monaco Athens Busan (South Korea) ~1,500 employees onshore and on the vessels Singapore 82 million tons of LNG transported
FSRUS ARE CHANGING GLOBAL LNG MARKETS
FRSUs Are Changing Global LNG Markets 5 1 Significant Increase In Future LNG Supply 2 Strong Demand For LNG In New & Existing Markets 3 FSRUs Are Opening Up New Demand Centres 4 Quicker, Cheaper And More Flexible 5 FSRU s A Preferred Choice For Most New Importers
Million tonnes per annum Million tonnes per annum FSRU: A Key Enabler For Emerging Market Demand 6 New LNG Importers By 2025 Demand By Key Driver 30.0 New LNG Importers By 2025 Demand By Region 20.0 7 25.0 8 16.0 20.0 15.0 10.0 7 47 12.0 8.0 18 7 27 5.0 4.0 3 0.0 Supply diversification Reduce reliance on oil Indigenous production replacement 0.0 Middle East Africa Europe Americas Asia Pacific Wood Mackenzie predicts up to 60 additional LNG importing nations by 2025 (37 currently) - although not all will Source: Wood Mackenzie,
Number of Terminals FSRU s The Most Popular Choice For New LNG Importers 7 5 Conventional 4 FSU FSRU 3 2 1 0 2012 2013 2014 2015 2016 2017 2018 Most new LNG importers have opted for an FSRU over a land based option Floating facilities offer a quicker, more flexible, cost effective solution Recent examples include Lithuania, Pakistan, Egypt and Jordan
FSRUs Open Up New Markets 8 HAWAII EL SALVADOR PANAMA CHILE Mejillones Octopus LNG (Hoegh) JAMAICA 22 in operation DOMINICAN REPUBLIC San Pedro de Macoris PUERTO RICO Aguirre ARUBA COLUMBIA Cartagena (Hoegh) 7 Including 2 FSU and 1 buoy based terminals BRAZIL CANARY ISLANDS URUGUAY Montevideo SENEGAL MARTINQUE/GUADELOUPE ARGENTINA Escobar (Excelerate) Bahia Blanca (Excelerate) Zarate-CSPA Rosales-Enarsa UK Teesside Port Meridian ITALY Livorno (OLT) Triton Falconara 5 IVORY COAST BENIN GHANA Quantum (Hoegh) WAGL (Golar) BRAZIL Pecem VT2 (Golar) Sergipe(Golar) Guanabara Bay VT3 (Excelerate) NAMIBIA KALININGRAD Gazprom MALTA CROATIA LITHUANIA Klaipeda (Hoegh) UKRAINE Odessa TURKEY GREECE Alexandroupolis Crete CYPRUS LEBANON ISRAEL EGYPT Ain Sokhna x 2 (Hoegh, BW Gas) SOUTH AFRICA Saldhana Bay Richards Bay JORDAN Aqaba (Golar) KENYA KUWAIT Ahmadi (Golar) UAE Dusup (Excelerate) Abu Dhabi (Excelerate) Emirates LNG 7 INDIA Swan Jagrad Digha Kakinada Gangavaram Ennore/Chennai MAURITIUS FSRU terminals PAKISTAN Port Kasim (Excelerate) Port Kasim 2 BW) Port Kasim 3, 4, 5 SRI LANKA Hambantota In Operation Under Construction Planned or possible (some 40 out of a list of 100 projects) BANGLADESH Maheskhali x 2 MYANMAR THAILAND MALAYSIA INDONESIA Lampung (Hoegh) Jakarta Bay (Golar) Java 1 Ciilacap Java Saipem Small Scale (9 or more) 3 HONG KONG VIETNAM Son Mai SINGAPORE CHINA China 1 China 2 PHILIPPINES Tabangao Batangas Bay Mariveles
Million tons per annum FSRU s Became Third Largest LNG Importer In 2017 9 45 40 35 30 25 20 15 10 5 0 Jan-13 Jul-13 Jan-14 Jul-14 Jan-15 Jul-15 Jan-16 Jul-16 Jan-17 South Korea China India FSRU FSRU s collectively as an importer became the third largest, after Japan and South Korea in 2015 FSRU s could overtake South Korea in 2017 as new imports ramp up from the likes of Columbia, UAE and Pakistan for example
The Alexandroupolis Project Is Making Good Progress 10 Alexandroupolis FSRU Development August 2017 FEED study with Wood Group Kenny completed Alexandroupolis Floating unit mooring location Q1 2018 Expected Final Investment Decision ( FID ) 2020 Commercial operations of the project are expected to commence Greek Prime Minister Alexis Tsipras: Energy cooperation has emerged as a key domain in our ties, through the promotion of new regional routes and pipelines of global significance. Bulgaria Prime Minister Boyko Borissov: We can support Greece in the development of its LNG capacity and achieve security for both countries.
Conclusion 11 1 A New Wave Of LNG Supply Creates Certainty Of Supply 2 FSRU s Create Quick And Cost Effective Access To This New Supply 3 New Importers Are Favouring FSRUs Over Land-Based Terminals 4 Alexandroupolis Is Well Placed To Be The Next Project To Take FID