MIDDLE EAST GAS 2002

DOHA - APRIL 10 - 11, 20002

The Market for LNG Vessels - Current and FutureBy

Ian Walker, Gas Business Development, Golar LNG Ltd.

Agenda

1. Golar LNG2. The LNG market

3. Supply Demand Balance

4. Conclusions

Golar LNG Ltd.

• World’s largest independent LNG shipowner (10 ships including 4 on order)

• Present in both Atlantic and Pacific basin

• Listed on Oslo stock exchange in May 2001, will be listed in US within Q2 2002

• Actively pursuing additional opportunities upstream and downstream in the LNG chain (trading, regas)

The Golar Strategy

1. To be a shipowner that charters out LNG tonnage for various periods to the market in general.

2. To be an LNG trader that buys LNG FOB from various sources either alone or with a partner, and sells gas to LNG customers all over the world. As part of the trading activity, Golar will consider investing in other parts of the LNG chain, like liquefaction or regasification capacity.

3. To be an LNG development/construction company that invests in or develops new concepts like floating regas or liquefaction units.

Agenda

1. Golar LNG

2. The LNG market3. Supply/Demand Balance

4. Conclusions

6

0

2

4

6

8

10

12

14

16

0 20 40 60 80 100 120

Power generation

4,8

2,4

2,5

Weighted average

3.1%

Industrial and commercial

Domestic

By segment

Average growth rate (2000–10)Percent

Year 2000 consumption (bcm)

US

Portugal

1bcm p.a.

2bcm p.a.5bcm p.a.

Current LNG users

Likely LNG users�

Spain

Belgium/Luxembourg

FrancePoland Germany

Italy

UK

Netherlands

Taiwan

ChinaIndia

IranSaudi Arabia

South Korea

Canada

JapanUAE

EgyptKuwait

MalaysiaIndonesia

ThailandPakistanAustralia

Qatar

BangladeshSingapore

JordanIraq

Mexico

Gas Consumptiongrowth expectations

Global LNG Trade Flows (Long Term)

Alaska

Algeria

Australia

Everett

Lake Charles India

Atlantic Basin

Asia/Pacific Basin

Import Terminal

Export Terminal

Turkey

TaiwanJapan

U.A.E./

Qatar/OmanTrinidad & Tobago Nigeria

Indonesia/Malaysia/Brunei

Import Terminal

Export Terminal

IPE NBP price = $2.18Brent 100%=$4.25Henry Hub

Gas Price = $2.87Japan LNG Av.

Import Price = $3.30

3 main Market Areas4 different price setters:March 2002

Large Arbitrage Opportunities

Agenda

1. Golar LNG

2. The LNG market

3. Supply/Demand Balance4. Conclusions

278.2

40.5

36.9

355.7

384.4

28.7

Regas Projects

Existing

Under construction

“Planned”

Total high probability capacity in 2005

“Prospective”

Total maximum potential in 2005

ESTIMATE

Everett expansion, MACove Point, MDElba Island, CAAndres, Dominican Rep.Dabhol, IndiaChita Midorihama, JapanTong Young, KoreaSines, PortugalIzmir, Turkey

2.57.23.33.66.94.08.31.82.9

200220022002200320022002200220042002

Capacity Start year

Atlantic LNGAtlantic LNG, NLNGAtlantic LNG, NLNGAtlantic LNGOmanAsian/Middle East suppliersAsian suppliersNigeriaQatar, Algeria

LNG supplier*Terminal

Huelva expansion, SpainSuape, BrasilDahej, IndiaHaziraCochin, IndiaBilbao, SpainOffshore GBS, ItalyGuandong, ChinaCartagena expansion, SpainValencia, SpainJapanBaja California

2.81.55.05.03.42.14.03.00.83.60.26.0

200320052004200420042003200520052003200520032006

Capacity Start year

NLNG 3Nigeria, Angola, Trinidad, VenezuelaRasGas IIINWS, OmanQatarRasGas IVNWS 4, MLNG IIIIndonesia/NWSNLNGEgyptIndonesiaIndonesia

LNG supplier *Terminal

Hackberry, LAFlorida via BahamasAltamira, MexicoRecife, BrazilP ipovav, IndiaKakinada, India

5.75.05.02.13.42.5

200420042005200320052005

Capacity Start year

Atlantic BasinAtlantic BasinAtlantic Basin Nigeria, Angola, Trinidad, VenezuelaMalaysia, AustraliaMalaysia, Indonesia

LNG supplier *Terminal

*Source:Golar internal

ESTIMATE

129.6

26.9

61

217.5

268.1

50.6

Liquefaction ProjectsTrinidadNigeriaMalaysia LNG IIINWS IVRasgas IIQatargas debott.

2+33

1,243

1, 2,3

6.73

6.84.24.71.5

200220032003200420042003

Train no. Capacity

NigeriaW. Niger DeltaAngolaBrass RiversQatar (Ras Gas II)Indonesia (Bontang I) Indonesia (Tangguh)EgyptTrinidad T4SnøhvitOman LNG

4+51+2

113

41,2,3

413

8844

4.84.7

312454

2005200620062006200520052005200520052005/062005/06

Capacity

Australia, TimorRussia, SakhalinNigeria LNG T6Snøhvit T2Venezuel a PariaPeru/BoliviaIndonesia US West/Baja

1210.6

45685

2006200620062006/072005/0620062006

Capacity

Spain, U.S.Spain, PortugalJapan, IndiaJapan, ChinaIndiaAsia, Europe

Buyers*

Europe/USEurope/USAtlantic BasinAtlantic BasinItaly/spotU.S., ChinaChina/IndiaFrance/US

US/EuropeUS, EuropeEurope/FE

Buyers *

FE/US West CoastJapan, Korea, ChinaEurope /USEurope/USUSUS West Coast/BajaUS West Coast/Baja-

In Progress Train no.

Buyers Proposed

Shipscommitted

Ships needed

Ships committed

Ships needed

Ships committed

Est. Ships needed

636121

636422

80000002030

884464312444

Existing capacity(as of 15 April 2001)

Under construction

“Planned” Total high probability capacity in 2005/06

“Prospective”

Total maximum potential in 2005/06

Source:Golar Internal

ESTIMATE

UnderConstruction

0

0

0

0

0

8

6

444446

LNG New Ship Supply

9

17

1210

2

4

2002 2003 2004 2005

FirmBG (1)MISC (2)Naviera Tapias (2)SCI/MOSK (1)NWS (1)NLNG (1)Knutsen (2)Shell (1)Lino Kaiun (1)GDF (1)

Speculative:Golar (2)Bergesen (1)AP Møller (1)

FirmGolar LNG (1)Bergesen (2)Exmar (1)Shell (2)BP (2)MISC (2)Naviera Tapias (1)Nigeria LNG (1)Elcano (1)Tepco (1)Tokyo Gas (1)SCI/MOSK (1)Lino Kaiun (1)

SpeculativeGolar (1)Exmar (1)

FirmExmar (2)MISC (1)Nigeria LNG (2)Brunei Gas Carriers (1)Tapias (1)BP (1)Shell(1)

FirmMISC (1)Exmar (2)Bergesen (3)NLNG (3)Tokyo Gas (1)

Source:Golar internal

Firm

Firm speculative

Total Firm orders to 2006 :

56 ships

2

FirmBergeson (1)Tepco (1)

2006

Supply/Demand Balance

Taking Production, Shipping and Regas Capacity coming on stream 2002 - 2006, this shows

– Regas Capacity Increase of c. 30%– Liquefaction Capacity Increase of c. 60%– Shipping Increase of c. 45%

Even counting Delays we consider the market to be in reasonable balance

Old WorldLong-term bilateral trades with

shipping capacity constraining trades

Shipping constraints seen as bottleneck linking upstream expansion to promising new markets

New WorldEntering dynamic growth period bringing

greater geographic diversity of Buyers and Sellers

More flexibleiInnovative sales arrangements

Orders now placed for uncommitted capacity

Trading patterns become less static with supply contracts tailored to a number of small buyers in a spread of locations

Large buyers – to buy from various sources on fob basis using due to emerging destination flexibility

A New Era

Other Developments and Changes

• Spot Market?It has already happened in the Atlantic basin Evidence :– 50 % of US cargoes in 2000 were spot sales.– 8 % of total LNG sold in 2000 were spot sales.– Companies are assembling asserts to take advantage of

swap opportunities– Distrigaz has re-routed LNG to US and substituted with

European gas.– Total Fina Elf has re-routed cargoes originally for the US to

European destinations– The plan of major LNG players based on increased spot

trading.• Japanese importers’ appetite for flexible offtakes & fob

purchases

The Golar Approach• Pursue a balanced approach to steadily

grow the “old world” plus build “new world” business through bold, calculated moves

• Entry ticket is; – uncommitted capacity– focused management– relations and reputation management– expanded role in the LNG supply crain

Agenda

1. Golar LNG

2. The LNG market

3. Supply/Demand Balance

4. Conclusions

Conclusions

From the foregoing we firmly believe that,

• the market is in a strong growth phase• Shipping supply/demand is in reasonable balance • The development of the Spot market will happen/has

happened and will drive a need for additional shipping capacity

We therefore believe that because of our position and management strengths we are well placed to take

advantage of these market qualities

Golar LNG Ltd.

HHI Mark III Technigaz MembraneDelivery : October 2004

Total Capacity : 140,000sm3