Oscar prieto (atlantic lng ) global benchmark by 2013

Atlantic LNG: lG obalh Benckmar by 2013Colombia - Mar 22, 2010Oscar Prieto, CEO, Atlantic LNGWorld Energy Trends44%Projected increase in world marketed energy consumptionAverage annual increaseTotal World: 2%OECD:1%Non OECD:3%South America: 2.8%World Energy TrendsEnergy Consumption by Fuel, 1980-2030(quadrillion Btu)50HistoryProjectionsLiquids4030Natural GasCoal20Nuclear10NoNnhydronhyrenerewneablesaHydropower01980199020002005201020202030Projected demanddemand growth:growth: World S.A.Oil1.4%1.8%Gas2.4%3.9%Coal2.4%4%2.9%9%Nuclear1.0%0.5%Other2.4%3.3%World Energy TrendsBiggest increase in usage is expected in Power GenerationWorld Electricity Generation• Fossil fuels forecasted to play important role• Electricity powerpower generation will account for 40% of all energy demand by 2030.• Natural Gas will remain an attractive option for powerpower generationNatural Gas: environmentally friendlyFossil Fuel Emission Levels - P oundsop eper B illioniB tBtu o fof E neEnergyg I nputInputPollutantNatural GasOilCoalCarbon Dioxide117,000164,000208,000C bar on Monoxidide4033208Nitrogen Oxides92448457Sulfur Dioxide11,1222,591Particulates7842,744MerMe cr uru yr0.0000.0070.016Sourc e: EIA - Natural Gas Issues and Trends 1998Natural Gas: economical option• Natural Gas vs Oil current assumptions– World oil prices to return to previous high levels after 2012 and to remain high through 2030.– World natural gas prices to remain suppressed with the i mpendingimpending glut in LNG marketmarket– Long Term: oil at US$70/barrel (or $12/mmbtu equivalent)equivalent forfor 2013 -2018– Long Term: natural gas at $5-$6/mmbtuActual and forecasted energy pricesEnergy Prices 2004-201818161412u 10btBrentmmNymex HH8$/6420200420052006200720082009201020112012201320142015201620172018YearSource http://www.cmegroup.com/Natural Gas in South America• EIA forecasts that natural gas will gbe the fastest-growing energy source in Central and South America• Several c ountriescountries intend to increase use o fof n aturalnatural gas for power generation to diversify electricity fuel mixes • N talurai gas p peliline infrastructiure s iln p ace in ththe region, but concerns about supply security have prompted development of LNG regasification terminalsSouth America LNG Imports• Argentina: – Commissioning of the Bahia Blanca GasPort LNG facility, South America's first ever LNG receiving facility and the world's second dockside regasification facility, with the initial capacity to import up to three LNG cargoes per month, each of which will contain approximately 3 Bcf of gas.• Brazil: – Two LNG regasification Terminals at Pecem in the northern Brazilian state of Ceara and at Guanabara Bay in Rio de Janeiro– Considering g a third LNG terminal by 2013y