Slide 1: Grain LNG
GRAIN LNG
Slide 2: National Grid overview
National Grid overview ▪ National Grid is an international electricity and gas company and one of the largest investor- owned energy companies in the world ▪ We play a vital role in delivering gas and electricity to many millions of people across Great Britain and north eastern US in an efficient, r
Slide 3: What is LNG?
What is LNG? ▪ LNG is Liquefied Natural Gas ▪ Identical to the gas at home ▪ Stored as a liquid at –161oC in heavily insulated tanks ▪ Stored at low pressures, (0.1 barg) ▪ When natural gas is a liquid it reduces its volume by 600 times ▪ It enables large volumes of gas to be transported long distan
Slide 4: Grain LNG overview
Grain LNG overview ▪ Largest terminal in Europe and 8th largest in the World ▪ Can supply 20% of UK gas demand ▪ Two purpose built jetties can take world’s largest LNG carriers ▪ Independent terminal operator, giving equitable customer service ▪ Key geographical location – close to London and at the
Slide 5: Our history
Our history From small peak shave facility to world’s 8th largest regasification terminal 2005 2008 2010 2015 Phase 1 Phase 2 Phase 3 Truck loading facility completed completed completed launches ▪ Originally a peak shave facility ▪ Added three new tanks, each ▪ Increased total storage to ▪ Successf
Slide 6: Ideal location and largest LNG Terminal in Europe
Ideal location and largest LNG Terminal in Europe River Thames River Medway Number Tank Number Tank 3 3 Terminal of tanks capacity m Terminal of tanks capacity m 1 South Korea Pyeong-Taek 21 2,960,000 6 Japan Negishi 14 1,180,000 2 South Korea Incheon 20 2,880,000 7 Japan Futtsu 10 1,110,000 3 Japan
Slide 7: Commercial: Business Model and Market
Commercial: Business Model and Market ▪ ~ £1bn Shareholder investment Grain LNG UK Market ▪ Long term take or pay contracts Customers ▪ Grain largest import terminal ▪ Construction & operational risk outside of Far East ▪ Independent terminal operator ▪ UK: World’s 3rd largest LNG importer (2011) ▪
Slide 8: Market evolution
Market evolution How things have changed… 2005 2009 2011 2015 2016 NBP was trading shale gas boom Fukushima flexible LNG price differential ~ $1.5 higher in the US starts Nuclear disaster supply diverted to being eroded by than Japan to bite high priced Asia oversupply $/MMBTU BCM/year 20 400 15 300
Slide 9: Market outlook
Market outlook Where we are heading… Potential over supply Potential under supply ▪ Period of oversupply likely to last 25% increase 800 until ~ 2025 in energy demand by 2040 (ExxonMobil) − Driving down LNG prices Supply high (supported by low HH price) 45% increase 600 − FID ‘slowdown’ as projects
Slide 10: Our services
Our services Flexibility and shared opportunities LARGE SCALE REGASIFICATION RELOADS TRUCK LOADING ▪ Primary service & main ▪ New service introduced in ▪ Launched late 2015 revenue generator 2015 ▪ Allows capacity holders to ▪ Capacity is sold ‘bundled’ ▪ Allows capacity sell their LNG to new & cons
Slide 11: Key Business Development Projects
Key Business Development Projects LNG Break bulk Marine On-site power Generation Floating Storage Description Description Description Ability to reload smaller vessels that Develop a CHP plant at GLNG Offer additional capacities on a will in turn supply off-grid/satellite flexible basis sites or mar
Slide 12: Additional Importation Capacity: Phase 4
Additional Importation Capacity: Phase 4 Opportunity Current status Metrics ▪ Direct Access to largest EU market (NBP) ▪ Planning consents in place ▪ Incremental investment leveraging ▪ Close to new LNG supply routes ▪ FID - ready to build when existing assets ▪ Not competing with Russian pipeline g
Slide 13: Isle of Grain – The Energy Island
Isle of Grain – The Energy Island