#1THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED The Trinidad & Tobago Energy Conference Sustainability through People & Technology Mark Loquan, President NGC 5th February 2019 THE NATIONAL GAS COM OF TRINIDAD AND TOBAGO PHOENIX PARK ngl GAS PROCESSORS LIMITED Trinidad and Tobago NGL Limited CNGC NGC ÔNG N National Energy Company Limited CORPORATION OF TRINIDAD AND TOBAGO MEMBERS OF THE NGC GROUP OF COMPANIES#2THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED DISCLAIMER The National Gas Company of Trinidad and Tobago Limited (NGC) has agreed to make this presentation to the attendees of this event. NGC makes no representation as to the accuracy of the information contained herein and advises that no reliance should be placed on that information. The information in this presentation is based primarily on publicly available sources, which NGC is not responsible for preparing or verifying. The information provided shall not be binding on NGC, its shareholders, board of directors, employees and/or agents, and has no legal effect and in no circumstances shall the contents be relied upon for any reason whatsoever. No responsibility is accepted by or on behalf of NGC, its shareholders, board of directors, employees and/or agents for any decisions made by the recipients of such information pursuant to receipt of the information nor shall NGC be responsible for any direct or indirect consequences as a result of any reliance on the information being provided by NGC herein. THE NATIONAL GAS COM OF TRINIDAD AND TOBAGO Subject to Disclaimer PHOENIX PARK GAS PROCESSORS LIMITED ngl Trinidad and Tobago NGL Limited CNGC NGC ÔNG N National Energy Company Limited CORPORATION OF TRINIDAD AND TOBAGO MEMBERS OF THE NGC GROUP OF COMPANIES#3THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED U.S. natural gas production by source, 1990-2040 trillion cubic feet 45 history projections 40 35 30 20 22525 15 10 0 eia shale gas and tight oil plays tight gas Lower 48 states offshore all other 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 Currently the US accounts for a 45% growth in global natural gas production; Shale Gas accounts for 2/3rds of the total output. Increasing Ammonia capacity in the US Global Trends Impacting Trinidad Subject to Disclaimer 8.3% Increase in Ammonia Production Emerging Asian markets, led by China, account for more than half of the growth in global natural gas consumption to 2023. China switching from Coal to Gas#4THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED Mismatched Contracts Declining Gas Margins Upstream vs Downstream Energy Ongoing Downstream Increased negotiations Regional Competition State Company Indebtedness Political Dynamics Higher Acquisition Cost Commodity Price Volatility Operating in a VUCA environment Stabilized Gas Supply Technology Advancement Molecular Reduced Optimization Exposure Improved Efficiency Ammonia/ Methanol Prices Increased Upstream Investment Inorganic Growth Opportunities Subject to Disclaimer#5• • Sercan THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED TROC Juniper • Lack of Timely Investment Depletion of Reservoirs 4,500 4,000 3,500 3,000 Max. Capacity Attained 2,500 2,000 1,500 1,000 500 Gas Supply Decline Molecular Optimization Stability Growth Willlion cuDIC / 5.000 Across the Border Marginal Fields Exploration Potential 0 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Subject to Disclaimer Source: MEEI Consolidated Bulletins and 2018/2019 Budget Statement Gas Supply Situation 4.000 3.000 1.000 ing Prod Producing roducing Produc no Producing Producing Produci ing Producing Producing Producing ducing Producing Produci Producing Producing Pro roducing Producing Producing 0 Producing Producing Produ Producing Producing Producing ng Producing Producing Produc Producing Producing Producing Pop ng Producing Producing Producing cover Producing Producing Producing Prom Disc cing Producing Producing Producing ewery Discove Producing Producing Producina Product Discovery DIS roducing Producing Producing Producing Discovery na Producing Producing Producing Producing coverv Dis Producing Producing Producing Producing Produ Discovery roducing Producing Producing Producing Producing cing Producing Producing Producing Producing Producing covery ery Dis o Producing Producing Producing Producing Producing Produc Dis Producing Producing Producing Producing Producing Producing Pro cino Producing Producing Producing Producina Producing Producino Producing Producing Producing Producing ducing Producing Producing Producing Produc 。ing Producing angina, Prodi Ando Pinducian 0 012 Producing Producing Producing T 014 2016 2018 2020 2022#6THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED The Present Domestic Supply-Demand Situation 2016 2018 20% 10% 0% -10% Supply Interruptions NGC Oversupply Plant Unavailability -20% -30% -40% -50% -60% -70% -80% Managing our Molecules Plant Efficiency Analysis | 2016 2018 86.92% 80.84% Improvement in supply stability across the network, positively impacting downstream plants. This improvement resulted in a trend of increasing Plant utilisation. Increasing Plant Utilisation Subject to Disclaimer ACTUAL UTILISATION#7THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED Energy Efficiency - getting the same or better output using less molecules Benefits Increased Mitigating Actions Renewable Energy Initiatives Solar Wind Renewable Energy & Energy Efficiency Subject to Disclaimer Revenue via taxes The Opportunity Cost in 2017 above U$300M, with approx. US$3B between 2012- 2017 Energy Efficiency Initiatives Molecular Optimization LIC ESCO Additional Gas supply to Downstream Additional gas improves plant efficiency Education Rethinking Energy Videos#8THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED ⚫ Debottlenecking Technology ● Asset Integrity • Molecular Optimisation • Power Tranche . Across the Border • Marginal Fields . Upstream Contracts • Downstream Contracts NGC today Alignment along the value chain • Improve communication along the value chain . • Train 1/Strategic discussions incl. GORTT on other Train Renewals LNG/Third Party Cargo Trading Energy Marketing & Trading Pipeline Company Aggregator Merchant Integrated Gas Player#9THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED Subject to Disclaimer Business Development Competency International Opportunities: • . Mozambique Ghana Inorganic Growth Cargoes & Asia LNG Regional Opportunities: Micro LNG Dragon & VZ opportunities Grenada Growing beyond T&T shores • Guyana Market Intelligence Locally: Strategic review of upstream and downstream investments CGCL Downstream#10THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED Secure Current Business Gas Contract Management Across the Border Supply Marginal Fields • Sustainability Develop Organization Org. Structure Technology Governance • Cost Management Project Grow Locally & Internationally • LIC LNG . Mozambique Marketing & Trading Strengthen National Contribution Carbon Sequestration Reforestation Heroes Foundation Steelpan Safety Subject to Disclaimer Management Values Culture Technology People Projects Cost Governance Strengthening the Organisation to ensure Sustainability Core Values: Safety & Environmental Preservation Integrity; Employee Engagement; Excellence; Transparency; Customer Focus; Corporate Social Responsibility Leadership Driven Learning Organization Data Driven Lessons Learnt/Incident Sharing#11THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED Safety & •ClearSCADA •Cyber Security •Field Surveillance - Robots & Drones • Leak Detection Security • Early Detection of Landslips Education •Real Time Pipeline Network Simulation Safety A QH Security EST Process Efficiency. Real Time Reporting Communication Cost Savings Enterprise Wide Systems •SAP Ariba ⚫E-Auction •SAP 4 Hana •SAP Success Factors •Energy Efficiency Videos launched in 2018 Subject to Disclaimer Communication Technology Strategy Shaping NGC • Podcasts •Yammer •E-Journals •Microsoft Teams Digital Dashboards High definition scanning of Group Facilities (Ports, Plants...) generating a savings of TT$16M#12THE NATIONAL GAS COMPANY OF TRINIDAD AND TOBAGO LIMITED OOC NGC Sponsorship PAN for Flute and Piano ere C# F# B B F Music Literacy Sheet Reading A • Music Scoring NGC/UWI undertake to transcribe Panorama compositions for 4 NGC sponsored bands NGC continues to build sustainability through people Subject to Disclaimer Pan Manufacturing & Tuning ⚫ NGC teamed up with MIC Institute of Technology to provide a Mechanical Engineering Technology with Steelpan Manufacturing Course Capacity Building (life skills) • Financial Management, Business Management...#13o 0 Back to the future 111 G 140 120 100 60 160 180 200 20 220 +C 40 240 10 1/1 20 260 280 34