World Energy Breakdown July 2014

This confidential material was produced by the NUS Consulting Group for use by the recipient. No part of this publication may be reproduced or transmitted to any third parties in any form or by any means, electronic or otherwise, without the prior written consent of the NUS Consulting Group. Because this information is based on projections and other hypothetical information, it is intended to be used for informational purposes only. It is not intended to constitute advice on any particular commercial investment, purchase, hedging, or trade matter and should not be relied upon for such purposes. Actual results will vary. Further, these projections are not indicative of future results as there can be no assurances due to the volatility of market conditions.

2NUS World Energy Breakdown

WTI Crude Oil (US$/bbl)C: $103.82

M/M: + 1.60 %Y/Y: + 5.70 %

Brazil CEPEA Hydrous Ethanol

(US$/liter)C: $0.5591

M/M: + 4 50%Y/Y: + 6.30%

Queensland Base load Power (A/MW/h)C: A$ 42.25

M/M – 7.40 %Y/Y: - 34.00 %

Singapore Fuel Oil (US$/ Ton)

C: $600.00M/M: + 0.70 %Y/Y: + 0.20 %

Rotterdam Coal (US$/t)

C: $72.75M/M: - 1.70 %Y/Y: - 15.00 %

Japan LNG (US$/ Dth.)

C: $ 16.08M/M + 5.60 %Y/Y: + 0.60 %

Local marketindicators based on the month ahead

value

Global marketindicators based on the month ahead

value

KEY

Venezuela Oil Basket

(US$/bbl)C: $64.41

M/M – 34.50 %Y/Y - 34.90 %

USACurrent price

Month over month %

Year over year %

Power per MW/h

Avg. power price to industrial users

$67.50 - 3.40 % + 3.70 %

PJM power area weekday

$67.10 + 23.50 % + 23.00 %

Palo Verde switch Weekday (day ahead)

$50.10 + 13.50 % + 26.40 %

Natural gas per Dth.

Henry Hub $4.39 - 4.80 % + 16.40 %

Europe Month-Ahead

Current price per MW/h

Month over month %

Year over year %

Baseload Power

Germany € 34.25 - 6.30 % + 11.30%

France € 32.39 -13.60 % + 10.80%

Spain € 49.45 - 11.90 % + 0.30 %

Swiss € 35.69 - 10.80 % + 4.50 %

UK £ 35.15 - 2.90 % - 25.90 %

Italy € 50.00 - 3.60 % - 25.10 %

Natural gas

NL (TTF) € 15.50 - 16.20 % - 40.50 %

UK (NBP) £12.66 - 6.80 % - 41.60 %

3NUS World Energy Breakdown

Global Energy SnapshotGlobal Energy Status:• Gazprom has appointed a new head of its export division, effectively the world's most powerful gas trader: Elena Burmistrova, who

was swiftly ushered in to talks with President Vladimir Putin. President Vladimir Putin said that Russia should consider recapitalizing state gas company Gazprom after a $400 billion deal with China which will require multi-billion-dollar investments in pipelines and new fields. Gazprom is enmeshed in a fresh gas pricing dispute with Ukraine, which has increased friction with the European Union following similar spats over the past decade that resulted in supply cuts to many European states.

• Targeting Iranian crude exports to force cuts in the nation’s nuclear program is becoming a riskier strategy for oil markets as violence erupts in neighboring Iraq and supply disruptions persist in Libya.

• Norway’s Industri Energi union and the oil and gas producer lobby reached an agreement on pay, averting a strike at companies including Halliburton Co., Schlumberger Ltd. and Baker Hughes Inc. A failure to reach an agreement would have resulted in a strike by 78 Industri Energi members working at oil-service companies.

US Energy Status:

• Crude prices moved higher this month on continuing concern regarding the instability in Iraq. Iraqi oil exports have not beeninterrupted to this point, contributing to crude prices coming off the high price of the month, $107.50. The majority of Iraq’s oil-producing capacity is located far from the violence, so the market is beginning to discount the possibility that there may be any interruption, a change in psychology that could further pressure prices.

• Natural gas prices have been moving lower as inventory replenishment has continued to pick up steam. The last seven inventoryreports released by the EIA have been greater than 100 bcf. By comparison, there were only two builds greater than 100 bcf in2013. While concerns regarding low inventory levels remain, the market is becoming increasingly comfortable with the assumption that there will be enough gas in the ground to supply winter demand.

• Power prices are mixed, but generally slightly lower on the month. The summer so far has been generally mild, so there have not been significant demand spikes to meet cooling needs. Hourly prices are expected to move higher as the summer goes forward ascooling demand is inevitable. Forward power prices will move with natural gas and coal prices, both of which may move lower should the summer remain mild.

4NUS World Energy Breakdown

Global Energy SnapshotEuropean Energy Status:

• Germany plans to adopt regulation that will rule out shale fracking for the foreseeable future. The government wants to ban hydraulic fracturing in shale rocks and coal beds at depths less than 3 kilometers (1.8 miles) and prohibit all types of fracking in water protection areas. The government will start drafting legislation and seek to adopt it in the second half. Fracking is unpopular in Germany even as Chancellor Angela Merkel’s government is keen to develop domestic energy sources as it closes nuclear plants by 2022.

• The Spanish gas grid operator informed that the gas sector reform would hit its revenue by an average of around 120 million euros a year through until 2020. The company is working on a cost cutting, efficiency plan for the next six years to offset the impact of the reform. Spain's government announced regulation on Friday to curb the tariff deficit in its gas sector created by years of mismatched regulated costs and revenues that has pushed up energy bills for consumers.

• Layers of shale in the U.K. that meet decades of domestic gas demand when drilled are well below water aquifers, minimizing the risk of contamination.

Asia-Pacific Energy Status:

• South Korea-based POSCO Energy, a subsidiary of POSCO, has signed a contract with the Tongyang consortium to acquire 100 percent of Tongyang Power, a coal power plant company, for consideration of KRW431bn. According to a research report from Nomura, the acquisition of Tongyang Power will increase POSCO's capacity to 5,300MW by 2021 from its existing power production capacity of 3,300 MW, through Incheon LNG Power Plant (3,000MW) and Gwangyang Gas Power Plant (300MW).

• China’s renewable energy capacity increased from just 27.8 GW in 2001 to 183 GW in 2013, says research and consulting firm GlobalData, and will continue to leave large footprints in its alternative energy track.

• Japanese lawmakers voted overwhelmingly on Wednesday to open up the residential electricity market to full competition, the latest step in a radical shakeup of the power industry in the wake of the Fukushima nuclear disaster.

5NUS World Energy Breakdown

Global Energy Snapshot

Latin America Energy Status:

• Chile – A new public opinion poll by Cadem Plaza Pública found that 63% of Chileans approve of the government’s recent decision to cancel HidroAysén’s permits. The poll results are in line with another survey which showed that 62% of Chileans are against the proposed dams. Cadem Plaza Pública also found that, 52% of Chileans believe there is an energy generation deficit and 80% would prefer to pay higher prices for energy that is clean and non-polluting. When asked what kind of energy the government should prioritize, 44% chose solar power, 21% selected wind power and 18% voted for hydroelectric power, with 11% going for natural gas, 2% for nuclear and 1% for coal. President Bacheletannounced that the government’s future energy agenda for the country’s southernmost region, Magallanes, will focus on diversifying the local grid by building up its renewable capacity and exploring alternatives to natural gas. Bachelethighlighted the region’s “extremely large” potential for wind energy in particular and mentioned exploring the opportunities for liquefied natural gas (LNG) and coal gasification.

• Mexico - The Mexican Environmental Law Center (CEMDA) and Greenpeace Mexico warn that the proposed secondary laws presented by the Executive branch last month failed to adequately promote renewable energy. In a letter to the Mexican Senate, the two civil society groups urge legislators to incorporate eight minimum criteria into the secondary laws, including ensuring ample public participation, ensuring that new demand growth is met with clean energy, promoting distributed generation, creating a smart energy grid, and incorporating an energy efficiency target. According Martha Sosa, Representative from the PAN party, the energy transition proposals her party has presented as part of the energy reform process includes measures to reduce the use of fossil fuels and boost renewable energy. Their long-term objectives include lowering electricity rates and ensuring that by 2024 500,000 homes and businesses use electricity generated by solar panels. However, the debate over the secondary laws that would regulate Mexico’s energy reform was suspended for the second time in one week when PAN representatives withdrew from discussions in reaction to a proposed reform to the general law on political parties.

6NUS World Energy Breakdown

1. Brent Crude Oil month ahead contract (US$ per barrel)

2. Foreign Exchange (Euro/USD)

Appendix

7NUS World Energy Breakdown

Appendix3. Coal CIF ARA 2013 delivery ($/T)

4. Natural gas prices, “Calendar year 2015” NBP in £p/therm, TTF & EEX gas in €/MW/h)

8NUS World Energy Breakdown

Appendix

5. European electricity prices for “Calendar Year 2015” (€/MWh)

9NUS World Energy Breakdown

Appendix

6. European day ahead electricity prices (€/MWh)

10NUS World Energy Breakdown

GlossaryWorld report (1):Avg power price to industrial users:

Latest unit cost for electricity consumed by industrial users as reported by the U.S. Energy Information Administration (EIA). The EIA usually publishes the data 4 months after the month of consumption.

Henry Hub Nat Gas:

The Henry hub in Erath, Louisiana serves as the pricing point for natural gas futures traded on the New York Mercantile Exchange (NYMEX).

WTI crude oil

The reported WTI light crude oil future price is the market determined value of next month’s contract to either buy or sell in multiples of 1,000 barrels West Texas Intermediate or other light sweet crude oil. WTI light crude oil contracts are only executed for physical delivery in relatively few cases but nevertheless they serve as an important pricing mechanism for contracts that are actually executed for physical delivery.

PJM power area weekday:

The Pennsylvania-New Jersey-Maryland (PJM) interconnection functions as a power pool for all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. The PJM power pool is currently the largest competitive wholesale electricity market. The price reported here is the price during weekdays.

Palo Verde switch weekday:

The Palo Verde switchyard located in Tonopah, Arizona is a key point in the western states power grid and is used as a pricing point for electricity across the southwest United States. The price reported here is the average market price for peak electricity to be consumed on the next day. Peak hours under this contract are from Mon – Sat between 0700 – 2200 hours local time.

Brazilian Ethanol:

The market price for a next month delivery of 1liter of ethanol at the mill gate in Sao Palo state as calculated by Cepea.

Rotterdam Coal:

The market price for a next month delivery of coal in the Amsterdam – Rotterdam – Antwerp (ARA) port area.

11NUS World Energy Breakdown

GlossaryWorld report (2):Germany:

The market price for one MWh of baseload electricity to be delivered next month as traded on the EPEX Spot Market www.epexspot.com.

France:

The market price for one MWh of baseload electricity to be delivered next month as traded on the EPEX Spot Market www.epexspot.com.

Spain:

The market price for one MWh of baseload electricity to be delivered next month as traded on the trading platform belonging to the Operador do Mercado Iberico de Energia (OMIP).

Swiss:

The market price for one MWh of baseload electricity to be delivered next month as traded on the European Energy Exchange (EEX).

UK:

The market price for one MWh of baseload electricity to be delivered next EFA month as traded on the Intercontinental Exchange (ICE). EFA month stands for the specific calendar in use under the Electricity Forwards Agreement that breaks up the year in equal blocks of 4 and 5 weeks so as to simplify trading.

TTF:

The Title Transfer Facility (TTF) is a virtual hub that serves as a pricing point for natural gas contracts within the Dutch gas network. The actual contracts are traded on the European Energy Derivatives Exchange (ENDEX).

NBP:

The National Balancing Point (NBP) is a virtual hub that serves as a pricing point for natural gas contracts within the United Kingdown. The actual contracts are traded on the Intercontinental exchange (ICE).

Singapore Fuel Oil:

The market price for Free on Board (FOB) 180 Centistoke (CST) fuel oil in Singapore port to be delivered next month.

Japan LNG:

The reported price for LNG in Japan is derived from the price of West Texas Intermediate (WTI) crude oil by means of an index formula and is reported in US Dollar per decatherm.

Queensland Baseload Power:

The market price for one MWh of baseload electricity to be delivered next month in Queensland as traded on the Australian Securities Exchange (ASX).

12NUS World Energy Breakdown

GlossaryAppendices:(1) Brent Crude Oil:

Brent crude oil is a combination of light crude oil from 15 different oil fields located in the North Sea. Due to the high quality of Brent crude, it is ideal for making gasoline and middle distillates. As such, Brent crude forms the pricing benchmark in Europe and Africa.

(2) Foreign Exchange:

The blue line in the graph presents the daily exchange rates Euro to USD while the red line represents the moving average over the last 14 trading days.

(3) Coal CIF ARA 20XX delivery:

Coal is an important input fuel for electricity generation. The coal price reported in appendix 3 is inclusive of commodity Cost, Insurance and Freight (CIF) from its origin to the ports of Amsterdam – Rotterdam – Antwerp (ARA) to be delivered next month.

(4) Natural gas prices for Calendar Year 20XX:

The featured contracts in this graph are for the delivery of natural gas in the UK (NBP), Dutch (TTF) and German (EEX) markets in the next Calendar year. The benefit of the annual contract is that the buyer has an average price throughout the year rather than individual prices for each month that are priced according to market conditions and can show great variances between winter and summer prices. For further information on the specific country contracts, please refer to the glossary for the world report.

(5) European electricity prices for Calendar year 20XX:

The featured contracts represent the current market price for one MWh of baseload electricity to be delivered next calendar year(except UK) as traded on each of the respective exchanges mentioned as source. The electricity market in the UK features the season contract as its longest contract. As a result, the reported market price is the average of the nearest summer and winter contracts.

(6) European day ahead electricity prices:

Next to future contracts, each electricity exchange also features a day ahead contract. The day ahead contracts are characterized by greater volatility than the monthly and longer period future contracts as they are more susceptible to actual supply and demand on the day as well as the other factors influencing the longer contract prices.