LNG AND DOMINANT ROLE OF KOREAN SHIPYARDS

J H C H U N GA F F I N I T Y KO R E A

6 T H N O V E M B E R 2 0 1 9

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LNG CARRIERS LARGER THAN 100,000M3

Non-Korean

Yards, 32%

DSME, 26%

SHI, 22%

HHI, 16%

Other Korean

Yards, 3%

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# of Ships % of Global Fleet

Global Fleet 511

Korean Built 344 67.3%

DSME 134 26.2%

Samsung 114 22.3%

Hyundai 84 16.4%

FLNG/FSRU/FSU LARGER THAN 100,000M3 - 2014 YTD

DSME, 23%

SHI, 41%

HHI, 36%

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# of Ships % of Global Fleet

Global Fleet 22

Korean Built 22 100%

DSME 5 22.7%

Samsung 9 40.9%

Hyundai 8 36.4%

ORDER BOOK FOR LNGC/FSRU/FLNG/BV

Non-Korean

Yards, 26%

DSME, 21%SHI, 29%

HHI, 24%

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# of Ships % of Global Fleet

Global Fleet 144

Korean Built 106 73.6%

DSME 31 21.5%

Samsung 41 28.5%

Hyundai 34 23.6%

CARGO CONTAINMENT SYSTEM

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Existing On Order Total

Moss 100 - 100

No. 96 203 40 243

Mk III 201 73 274

MOSS Type LNGc Membrane Type LNGc

NOTABLE DEVELOPMENT BY KOREAN SHIPBUILDERS

• All 50 Qatar Max and Flex ships have been built by Major Korean Shipbuilders.

• All the 15 Arctic 7 ships have been built by DSME.

• All the FSRUs and FLNGs have been built or are under construction by KoreanShipbuilders.

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Technology Leaders in

135,000 m3 165,000 m3 Q-Flex (210,000 m3)

and Q-Max (260,000 m3)

Steam Turbine DFDE 2-Stroke Engine (ME-GI and X-DF)

NOTABLE DEVELOPMENTS BY KOREAN SHIPBUILDERS

• No further Significant technical disruption is expected

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~2004 2004 - 2012 2014~

Cargo Capacity (m3) 138K 150K – 160K 174K – 180K

Propulsion System Steam Turbine DFDE X-DF / ME-GI

• Trend of Technical Development

GOING FORWARD

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LNGc

Korean Shipbuilders will continue to play a major role in the future.(70 Qatari projects, 15 Mozambique, 15 Arctic II LNG ships, etc)

LNG as Fuel

LNG Fueled Container Ships, VLCCs and Valesmax(100 tons/day consumption or above)

GOING FORWARD

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FLNG

Samsung Heavy Industries (SHI)Shell Prelude FLNG, Petronas II, Coral FLNG

Daewoo Shipbuilding & Marine Engineering (DSME)Petronas I FLNG

VESSEL DEMAND-SUPPLY BALANCE OUTLOOK

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(100)

(50)

-

50

100

150

200

Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

2019 2020 2021 2022 2023

Mill

ion

Mt

Vessel Demand Vessel Supply Shipping Balance

• Vessel supply tightness driven by new and ramped up export capacities is expected toease in 2021, when vessels currently on order and uncommitted start to hit the water

• The subdued order market moving into 2020 and beyond would then see thefundamentals tighten again in 2023, as further capacity expansions go unmatched by thecorresponding expansion in vessel volumes.

4 2 56 7

4 7 8

6 4 120

140

160

180

200

220US$ m # Vessels (orderbook uncommitted) # Vessels (orderbook committed) # Vessels (delivered) NB Price

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q42009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023N

ewbu

ild P

rice

& D

eliv

erie

sSh

ippi

ng B

alan

ce

Basis the current number and schedule of projects under construction, the likelihood of a substantial supply tightening between 2023 and 2024 is increasing• LNG Canada, Golden Pass, Sabine Pass T6, Mozambique LNG and Calcasieu LNG and Arctic LNG 2 will supply an additional ~ 77 mpta starting from 2023/2024

(FID since Oct ’18)• Qatar revised its expansion project in 2018 and it will now reach a nameplate capacity of ~110 mtpa by 2023/2024

LNG PROJECTS LANDSCAPE AFTER 2022

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Source: Affinity, latest industry source and best estimates, 95% utilization. Indicative purpose only

Start-Up Project Expected Offtake Market MtpaDedicated Project

VesselsExpected Vessel

Req. Vessel Deficit (E)

2023-

2024

LNG Canada (FID taken in Q4 18) Asia/Equity Portfolio 14.0 2 13 (11)Sabine Pass LNG T6 (FID taken in Q2 19) Asia/Europe/Portfolio 4.8 8 (8)Woodfibre LNG (No FID) Asia/Portfolio 2.1 2 (2)Cameron T4-T5 (No FID) Europe/Portfolio 9.0 12 (12)Qatar Expansion (I) (No FID) Unsold/Portfolio 16.9 18 (18)Arctic LNG 2 (FID taken in Q3 19) Unsold/Asia/Portfolio 19.8 24 (24)Energía Costa Azul (No FID) Asia 2.5 2 (2)Calcasieu Pass (FID taken in Q3-19) Europe/Portfolio 10.0 13 (13)Mozambique LNG (FID taken in Q2 19) Asia/Portfolio 12.8 14 (14)Magnolia T1-T2 (No FID) Unsold/Portfolio 4.4 7 (7)Delfin LNG T1-T2 (No FID) Unsold/Portfolio 6.5 11 (11)Djibouti (No FID) Asia 3.0 4 (4)Golden Pass (FID taken in Q1 19) Unsold/Equity Portfolio 15.6 27 (27)Port Arthur LNG (No FID) Unsold/Europe 13.5 15 (15)Lake Charles T1 (No FID) Unsold/Portfolio 5.0 9 (9)Gulf LNG (No FID) Unsold/Portfolio 5.8 10 (10)Rio Grande LNG T1-T2 (No FID) Unsold/Portfolio 9.0 15 (15)Plaqueminas (No FID) Unsold/Portfolio 10.0 17 (17)Driftwood (No FID) Unsold/Portfolio 11.0 19 (19)Goldboro LNG (No FID) Europe 10.0 11 (11)Greater Tortue FLNG (II) (No FID) Portfolio 2.5 3 (3)Qatar Expansion (II) (No FID) Unsold/Portfolio 16.9 17 (17)Magnolia T3-T4 (No FID) Unsold/Portfolio 4.4 7 (7)Texas LNG (I) (No FID) Unsold/Portfolio 2.0 3 (3)Nigeria LNG T7 (No FID) Unsold/Portfolio 8.0 9 (9)Freeport T4 (No FID) Unsold/Portfolio 5.0 9 (9)Rovuma LNG (No FID) Unsold/Portfolio 15.2 16 (16)Delfin LNG T3-T4 (No FID) Unsold/Portfolio 6.5 11 (11)Papua LNG (No FID) Asia 5.4 5 (5)

Total (incl non-FID) 252 331 (329)Total (exlc. Non-FID) 77 2 99 (97)

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