LNG TERMINAL IN ŚWINOUJŚCIE: ENERGY SECURITY FOREAST & CENTRAL EUROPE - PROSPECTS FOR THE BALTIC HUB

Sławomir Sieradzki, Deputy Director Development DivisionTrelleborg, 8th September 2017

Siedziby Centrali i Oddziałów

Tłocznie

Terminal LNG

System gazu E

System gazu Lw

System Gazociągów Tranzytowych

Granica Oddziału

NATURAL GAS INFRASTRUCTURE

10.989 km*LENGHT OF TRANSMISSION NETWORK

896 GAS NODES

67 SYSTEM NODES

15 COMPRESSOR STATIONS

100% SHARES HELD BY STATE TREASURY

LNG TERMINAL IN ŚWINOUJŚCIE (100% owner of Polskie LNG company)

2758 NUMBER OF EMPLOYEES

*Data according to company’s status for 31 December 2016

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NATURAL GAS MARKET IN THE CEE & BALTIC REGION

DEMAND FORECASTS UNTIL 2035

► Current gas demand in the CEE and Baltic regions amounts for approx. 81 bcm/y

► Demand expected to increase up to 91 bcm/y

Source: ENTSOG

MAJOR GROWTH FACTORS

► Enhanced competitiveness vis-a-vis other sources in the energy market

► Climate and environmental considerations – switch to lower emitting sources

► Natural gas in the power generation sector

► Transport and shipping sector (LNG as an alternative fuel)

50,0

100,0

150,0

200,0

250,0

75,0

80,0

85,0

90,0

95,0

2017 2020 2025 2030 2035

bc

m/y

CEE&Baltic (left axis) NW (right axis)

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LNG TERMINAL IN ŚWINOUJŚCIE

Regasification Capacity5 bcm/y – currently

7,5 bcm/y (preparation in progress) up to 10 bcm/y –following planned extension

LNG OffloadingFacility designated to receive carriers from 120,000to 216,000 cm (Q-flex vessels)

Carriers characteristics, draught: 12.5 m, length: 315 m

StorageTwo storage tanks with capacity of 160,000 cm each.

Possibility for construction of a third additional storagetank (space reserved)

Capacity bookingBooked: 570,000 cm/h (100%)

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NEW SERVICES TO COME

Additional LNG services to foster the deployment of LNG as a competitive and sustainable fuel:

► LNG truck loading services

► LNG bunkering services

► LNG reloading to smaller vessels

► LNG storage services

► LNG in transport sector

► LNG as a ship fuel

New solutions to increase business opportunities in the CEE and Baltic regions

TODAY TOMORROW

SCV

Jetty 2’ndJetty

CHP

NewSCV

LNG RELOADING AND TRANSPORT – HIGH PERSPECTIVITY

87% 13%

0% 20% 40% 60% 80% 100%

Geographical coverage of trucks loaded

Poland Other EU countries

► Above 1500 truck loading operations since the commissioning of LNG terminal operational activity

► Growing number of foreign customers

► Planned extension of LNG terminal infrastructure as a response to increasing demand on the market

► More than 49 000 LNG truck loadingoperations in Europe that consistsa growth of 12% Y/Y

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42

89

131137

113

149

193 189

117107

77

49

0

50

100

150

200

Nu

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er

of l

oa

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itie

s

2016 2017

Number of LNG-to-truck reloading operations at LNG terminal in Świnoujście

SECOND JETTY & SMALL SCALE SERVICES

►

Picture: PLNG

Aim of infrastructure extension:► Providing the new services to customers related to:

� Loading and unloading small and mediumscale LNG tankers

� Transshipment of LNG from LNGC connected toarms at unloading berth to small scale tankerlocated at second jetty

� Shore-to-ship bunkering� LNG loading to bunkering vessels

LNG-TO-RAIL - LAUNCHING NEW SERVICES TO CUSTOMERS

►

Picture: Hitachi

Aim of infrastructure extension:► Providing technical basement for:

� Intermodal LNG transport after its reloading intoISO containers/gas wagons at LNG terminalin Świnoujście

� Virtual pipeline implementation in order toenabling a customer with lack of technicalpossibility to connect to the gas transmission system

� Providing necessary volumes of LNG for peakshaving plants, satellite regasifcation station andLNG distribution centers

PROPOSED VIRTUAL PIPELINE SUPPLY CHAIN

Railway transport

Regasification plant

Intermodal center

Railway sidingat LNG terminal in Świnoujście

Road transport

► LNG loading into ISO containers / cryogenic railtanks or:

► Reloading of ISO containerson wagon platforms

► Metering of LNG’s quantityand quality

► Transport of LNG in ISO containers orcryo rail tanks via railways

► Intermodal service: reloading the ISO containers from railonto truck platform trailers

► LNG regasification

► Processing storage of LNG in pressure tanks

► Metering and dispatching of naturalgas

Customer of GS

► Receiving the gasfuel and metering

► Eventually, furtherdeliveries via distribution network by its operator

► Transport of LNG in ISO containers via roads

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IMPACT FROM SMALL SCALE SERVICES

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LNG TERMINAL IN ŚWINOUJŚCIE

BALTIC

CEE

NEW SUPPLY OPPORTUNITIES FOR THE BALTIC REGION

► Baltic region. New source of supply for the Baltic States and Finland via Poland – Lithuania interconnection

► CEE region. LNG supplies provided to the CEE region and Ukraine via the North-South Gas Corridor

LNG Terminal in Świnoujście as the key component of the strategy to diversify gas supplies in the CEE and Baltic

regions

A new long-term contract with Qatargas signed up to 2.9 bcm/y

THANK YOU FOR YOUR ATTENTION